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NICs are countries whose economies have not yet reached a developed country's status but have, in a macroeconomic sense, outpaced their developing counterparts. Such countries are still considered developing nations and only differ from other developing nations in the rate at which an NIC's growth is much higher over a shorter allotted time period compared to other developing nations.[1][2] Another characterization of NICs is that of countries undergoing rapid economic growth (usually export-oriented). Incipient or ongoing industrialization is an important indicator of an NIC. In many NICs, social upheaval can occur as primarily rural, or agricultural, populations migrate to the cities, where the growth of manufacturing concerns and factories can draw many thousands of laborers. NIC's introduce many new immigrants looking to improve their social and or political status thorough newly formed democracy's and increase in wages that most individuals who partake in such changes would obtain.[3]

Newly industrialized countries can bring about an increase of stabilization in a country's social and economic status, allowing the people living in these nations to begin to experience better living conditions and better lifestyles. Another characteristic that appears in newly industrialized countries is the further development in government structures, such as democracy, the rule of law, and less corruption. Other such examples of a better lifestyle people living in such countries can experience are better transportation, electricity, and better access to water, compared to other developing countries.

For China and India, the immense population of these two countries (each with over 1.2 billion people as of September 2015) means that per capita income will remain low even if either economy surpasses that of the United States in overall GDP. When GDP per capita is calculated according to purchasing power parity (PPP), this takes into account the lower costs of living in each newly industrialized country. GDP per capita typically is an indicator for living standards in a given country as well.[22]

Brazil, China, India, Mexico and South Africa meet annually with the G8 countries to discuss financial topics and climate change, due to their economic importance in today's global market and environmental impact, in a group known as G8+5.[23] This group is expected to expand to G14 by adding Egypt alongside the five forementioned countries.[24]

Authors set lists of countries accordingly to different methods of economic analysis. Sometimes a work ascribes NIC status to a country that other authors don't consider a NIC. This is the case of countries such as Argentina, Egypt, Sri Lanka[25] and Russia.[9]

NICs usually benefit from comparatively low wage costs, which translates into lower input prices for suppliers. As a result, it is often easier for producers in NICs to outperform and outproduce factories in developed countries, where the cost of living is higher, and trade unions and other organizations have more political sway. This comparative advantage is often criticized by advocates of the fair trade movement.

Critics of NICs argue economic freedom is not always associated with political freedom in countries such as China, pointing out that Internet censorship and human rights violations are common.[26] The case is diametrically opposite for India; while being a liberal democracy throughout after its independence,[citation needed] India has been widely criticized for its inefficient, bureaucratic governance and slow process of structural reform. Thus, while political freedom in China remains limited, the average Chinese citizen enjoys a much higher standard of living than his or her counterpart in India.[27]

South Africa faces an influx of immigrants from countries such as Zimbabwe, although many also come from Burundi, Democratic Republic of the Congo, Rwanda, Eritrea, Ethiopia and Somalia.[28] While South Africa is considered wealthy on a wealth-per-capita basis, economic inequality is persistent and extreme poverty remains high in the region.[29]

Mexico's economic growth is hampered in some areas by an ongoing drug war.[30]

Other NICs face common problems such as widespread corruption and/or political instability as well as other circumstances that cause them to face the "middle income trap".